Nucleus Research | Return On Investment (ROI) http://nucleusresearch.com We help our clients build the ROI business case for technology. Tue, 07 Jul 2015 16:32:56 +0000 en-US hourly 1 How Retailers Can Keep Pace with Amazon – Part II http://nucleusresearch.com/how-retailers-can-keep-pace-with-amazon-part-ii/ http://nucleusresearch.com/how-retailers-can-keep-pace-with-amazon-part-ii/#comments Tue, 07 Jul 2015 16:32:56 +0000 http://nucleusresearch.com/?p=8304 Being a retailer these days is not easy. Consumers have strong demands and many options to get what they want....

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Being a retailer these days is not easy. Consumers have strong demands and many options to get what they want. Delivering the exact products they seek at the best price and with the fastest delivery is the name of the game.

And as I noted in my last post, Amazon has set the bar very high. Brand loyalty is not what it used to be and consumers quickly go elsewhere – often from a mobile device – when a retailer doesn’t have the right item in stock. Or at the right price. Or delivered quickly enough.

We also discussed control tower solutions, which provide visibility across the entire supply chain, versus Distributed Order Management (DOM) systems, which enable order fulfillment with products in stock. Nucleus predicts that Amazon will put any retailer that doesn’t deploy supply chain control tower solutions out of business within five years.

This goes beyond keeping pace with what Amazon is doing today. Retailers need to think about how to compete over the next few years. At Amazon, the breadth of products available is only getting broader, the prices are only getting more competitive and the delivery is only getting faster. It only gets harder from here.

So how can retailers plan for the future and set themselves up to be even more competitive in a highly volatile, omnichannel environment? Analytics!

Retailers need more insight into what consumers want, when they want it and what they are willing to pay. They need to get ahead of trends to be prepared to take full advantage of a cycle, rather than coming late to the party.

This only builds the case for control tower technology. Perhaps the biggest trend across enterprise technology today is the integration of analytics with key business applications for richer insight. When you consider the supply chain, DOM systems only provide visibility into what is in stock at any given time. Control tower, on the other hand, gives a view of items across the entire system, including items en route or even at the manufacturer. Analytics will provide supply chain control towers with the business intelligence to spot trends as they emerge and then make the course corrections in production and distribution to have those products in the store.

Consumers are fickle and cultural events such as movies, TV or even concerts can create instant sensations with heated demand for a hot product. Analytics could help retailers understand how quickly they can jump on an emerging trend and capitalize on the sudden interest in bowties, studded eyeglasses or that funny hat Pharrell wears.

Capturing the early adopters and the middle of the bell curve before the trend fizzles can add significantly to the bottom line. And just as Amazon’s massive size gives it volume-pricing advantages, it is also the giant’s largest liability. Nimble retailers that identify trends and act quickly can take the lion’s share of sales before Amazon even sees it coming. That’s how they stay ahead of Amazon. Integrating analytics with control tower solutions, not DOM systems, will get them there.

For a detailed look at Control Tower solutions, check out our Value Matrix at http://bit.ly/1CkWy9r

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p120 – Technology Value Matrix 2015 – Supply Chain Control Towers http://nucleusresearch.com/download/p120-technology-value-matrix-2015-supply-chain-control-towers/ http://nucleusresearch.com/download/p120-technology-value-matrix-2015-supply-chain-control-towers/#comments Tue, 07 Jul 2015 15:35:41 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8299 The post p120 – Technology Value Matrix 2015 – Supply Chain Control Towers appeared first on Nucleus Research | Return On Investment (ROI).

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p119 – LLamasoft plans upgrades new data platform for analytics http://nucleusresearch.com/download/p119-llamasoft-plans-upgrades-new-data-platform-for-analytics/ http://nucleusresearch.com/download/p119-llamasoft-plans-upgrades-new-data-platform-for-analytics/#comments Mon, 06 Jul 2015 14:09:43 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8296 The post p119 – LLamasoft plans upgrades new data platform for analytics appeared first on Nucleus Research | Return On Investment (ROI).

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p118 – NetSuite ROI case study – Jaybird http://nucleusresearch.com/download/p118-netsuite-roi-case-study-jaybird/ http://nucleusresearch.com/download/p118-netsuite-roi-case-study-jaybird/#comments Thu, 02 Jul 2015 20:54:27 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8283 The post p118 – NetSuite ROI case study – Jaybird appeared first on Nucleus Research | Return On Investment (ROI).

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p117 – EfficientIP ROI case study – Anonymous University http://nucleusresearch.com/download/p117-efficientip-roi-case-study-anonymous-university/ http://nucleusresearch.com/download/p117-efficientip-roi-case-study-anonymous-university/#comments Thu, 02 Jul 2015 17:32:06 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8278 The post p117 – EfficientIP ROI case study – Anonymous University appeared first on Nucleus Research | Return On Investment (ROI).

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p115 – Finding value in improving team dynamics with IBM and Globoforce http://nucleusresearch.com/download/p115-finding-value-in-improving-team-dynamics-with-ibm-and-globoforce/ http://nucleusresearch.com/download/p115-finding-value-in-improving-team-dynamics-with-ibm-and-globoforce/#comments Wed, 01 Jul 2015 19:41:32 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8272 The post p115 – Finding value in improving team dynamics with IBM and Globoforce appeared first on Nucleus Research | Return On Investment (ROI).

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p116 – Bpmonline releases new capabilities with version 7.6 http://nucleusresearch.com/download/p116-bpmonline-releases-new-capabilities-with-version-7-6/ http://nucleusresearch.com/download/p116-bpmonline-releases-new-capabilities-with-version-7-6/#comments Tue, 30 Jun 2015 20:34:39 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8269 The post p116 – Bpmonline releases new capabilities with version 7.6 appeared first on Nucleus Research | Return On Investment (ROI).

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How Retailers Can Keep Pace with Amazon – Part I http://nucleusresearch.com/how-retailers-can-keep-pace-with-amazon-part-i/ http://nucleusresearch.com/how-retailers-can-keep-pace-with-amazon-part-i/#comments Tue, 30 Jun 2015 18:54:33 +0000 http://nucleusresearch.com/?p=8267 “Retailers that don’t adopt control tower solutions will be put out of business by Amazon within five years,” proclaims James...

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“Retailers that don’t adopt control tower solutions will be put out of business by Amazon within five years,” proclaims James Cooke, principal analyst here at Nucleus Research. A strong statement for sure, but I know that James doesn’t pull any punches, basing his conclusion on research and his extensive supply chain expertise. That’s why I hired him.

Still, his prediction seemed a bit dire at first, until I read his rationale in Retailers Skip DOM and Go Control Tower. We’ve entered the age of the omnichannel, where consumers can easily research and buy products with mobile devices from virtually anywhere. Imagine a consumer not finding a product on the shelf and simply going online to order it from a competitor right in the aisle of your store. And in an online scenario, consumers quickly move to the next e-commerce site when they don’t’ find exactly what they want. That’s how competitive retail has become.

And that’s why James argues so passionately for control tower solutions rather than Distributed Order Management (DOM) systems. In a nutshell, DOM enables order fulfillment with products that are readily available. This works fine for items in stock, but what about finding sold-out items elsewhere in the supply chain?

Control tower technology has been seen more as a logistics app, but it provides insight into products throughout the entire supply chain, including items en route. With this macro view, retailers can be more flexible. If a product is out of stock in the New Jersey warehouse, for example, the retailer can find it in the Georgia or California location and ship for on-time delivery. It can even find that desired red sweater on a truck heading to a warehouse and upon arrival have it shipped out. Sale saved.

And let’s face it, Amazon has set the benchmark. Leveraging its massive volume of transactions, Amazon has made delivery fast and cheap to put pressure on the entire industry. Amazon Prime offers free two-day delivery on most items and with Prime Now, thousands of items are delivered within two hours in select geographies. Near-instant delivery could be the new standard within a few years.

To keep pace, smaller retailers simply must leverage technology to punch above their weight class and remain competitive with Amazon. The best way to do that right now is through control tower.

Look for my follow-up post on this topic for a discussion on what comes next.

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p113 – GoodData ROI case study – Anonymous http://nucleusresearch.com/download/p113-gooddata-roi-case-study-anonymous/ http://nucleusresearch.com/download/p113-gooddata-roi-case-study-anonymous/#comments Tue, 30 Jun 2015 16:52:22 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8260 The post p113 – GoodData ROI case study – Anonymous appeared first on Nucleus Research | Return On Investment (ROI).

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p114 – Assessing the value of EmpInfo http://nucleusresearch.com/download/p114-assessing-the-value-of-empinfo/ http://nucleusresearch.com/download/p114-assessing-the-value-of-empinfo/#comments Tue, 30 Jun 2015 16:34:18 +0000 http://nucleusresearch.com/?post_type=wpdmpro&p=8257 The post p114 – Assessing the value of EmpInfo appeared first on Nucleus Research | Return On Investment (ROI).

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